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TRANSCRIPT
"The verdict today in California and yesterday's verdict in New Mexico together, mark a very critical milestone in the fight against big tech. We know that they are no longer invincible. We know that people, ordinary citizens and lawmakers will no longer stand for them exploiting children for profit."
That's social media activist Julie Scelfo, the founder and executive director of Mothers Against Media Addiction in the United States.
She's commenting on two landmark cases against social media giants - the first in New Mexico, where a jury ruled that Meta, which owns Facebook and Instagram, knowingly harmed children’s mental health and concealed what it knew about child sexual exploitation on its social media platforms.
That trial's chief judge, Bryan Biedscheid says Meta was found guilty of prioritising profits over safety and hid what it knew about the dangers of child sexual exploitation on its platforms and impacts on child mental health.
"So, on question one, did META violate the Unfair Practices Act by engaging in an unfair or deceptive trade practice? The jury answers yes. Question two, did Meta act willfully by engaging an unfair or deceptions trade practice? The answer is yes."
Jurors found there were thousands of violations, each counting separately toward a penalty of AU$540 million.
In the second case, in California, a jury found Meta liable for AU$6 million dollars ((US$4.2 m)) in damages and Google for AU$2.6 million ((US$1.8 million)).
This case involves a 20-year-old woman, a minor when the case began who is known in court by her first name Kaley.
She said she became addicted to Google's YouTube and Meta's Instagram at a young age because of their attention-grabbing design.
The jury found Google and Meta were negligent in the design of both apps and failed to warn about their dangers.
Kaley's lawyer, Mark Lanier, says at last, accountability has arrived.
"This message is one that's important to Kaley and her family, but it's a very great importance to a generation of people who have been affected. We've had a number of family members who have been so diligent to be here to lend moral support, prayer support, emotional support during this trial. There are so many families who've been tragically hurt through the addiction of social media."
Punitive damages for the companies will be decided later on, but for now, although the damages may seem large, they are small amounts for two of the world's most valuable companies.
Meta said in January it expects its capital spending for 2026 to be between AU$165 billion and AU$195 billion.
Alphabet said the same month it expects to spend between AU$250 billion and $280 billion in 2026.
Meta disagrees with the verdict and its lawyers are said to be evaluating their legal options.
Google plans to appeal.
Stephen Scheeder is Facebooks former CEO for Australia and New Zealand.
He told Channel Seven whatever happens next, this is a game-changer, and many countries will be looking to see how Australia's ban on social media for young people works out.
"Both the platforms have an opportunity to appeal this verdict. It could go the other way on appeal and we could be back to where we were. But I think what you're going to see is what you're already seeing. You're seeing you're seeing a number of things. One is more government stepping in states in the US, countries like Australia, putting more restrictions and controls mandatory on these platforms about who can be on them and what kind of content can be served. I think the second is the the platforms themselves bringing up, bringing in many more controls and obvious things by default that mean that it's not as addictive from the get go as it has been in the past. "
Mary Rodee was one of those supporting Kaley's case in California.
Her son, Riley Basford took his own life after being blackmailed by a fake online account.
She says for the companies, it's all about the bottom line.
"They will stop at nothing to keep these kids' eyes on the screen and that's the message. No family is alone in this. Every kid with a cell phone, with any device, with a camera and connection to the Internet is in danger. Even if you're honest about their age, they do not care about these kids except for the money that they make for them."
If you or someone you know needs crisis support, contact Lifeline on 13 11 14, the Suicide Call Back Service on 1300 659 467 and Kids Helpline on 1800 55 1800 (for young people aged up to 25). More information and support with mental health is available at beyondblue.org.au and on 1300 22 4636.
